Apple Reference & Presen…rary 8 (Internal Edition)/Apple R&P Lib Internal v8.0.iso/3-Presentations/Apple Computer Inc./Industry Competition/ROMs/Apple/IIfx Competition Summary

Text File | 1990-06-24 | 18KB | 346 lines

IIfx Competition/Summary

2/90

Apple Confidential/Need to Know

From Dave Garr

Macintosh IIfx vs. High-End PC Compatibles


Summary

This document compares the Macintosh IIfx with its primary competition—high-end
PC compatibles.

Large market for high-end PCs.  According to Dataquest, the growth rate of
25-MHz and above personal computers from 1990 through 1993 will be 58 percent
per year.  The Macintosh IIfx will compete primarily with high-end 386 systems
and 486 systems for share of that large and growing market.

The Macintosh IIfx system’s key advantages over high-end PCs:

The Macintosh IIfx is faster than Compaq’s 386/33 and IBM’s Model 70 486 when
running graphics-based applications.  National Software Testing Laboratories
ran benchmarks comparing the performance of the Macintosh IIfx with that of the
Compaq 386/33 and the IBM  Model 70 486.  NSTL found that the Macintosh IIfx
was faster than both these systems for all three graphics-based applications
tested:  Excel, PageMaker, and Illustrator.  Indeed, the Macintosh IIfx ran 34%
to 270% faster than IBM’s 486 machine.

The Macintosh IIfx is priced lower than 386/33 and 486/25 systems.  Using
comparable configurations, the IIfx is priced $1,452 less than Compaq’s 386/33
system and $3,295 less than IBM’s 486/25 system, even though it outperformed
those systems in all three graphics-based applications tested.  From a strictly
price/performance perspective, the IIfx competes aggressively with 486-based
systems.

The Macintosh IIfx offers extra hardware features.  The Macintosh IIfx includes
many features as standard that are expensive options, or simply not available,
on high-end PC compatibles, such as networking, SCSI support, and a sound chip.
Therefore, customers can do more with the standard Macintosh IIfx than with the
standard high-end PCs.

The Macintosh IIfx delivers the Apple Advantage.  More important than its
excellent performance, aggressive pricing, and standard hardware features, the
IIfx is a Macintosh.  As such, it has all the Apple advantages over high-end PC
compatibles (powerful technology that’s easy to use, innovative applications
that all work together, built in multivendor networking, and extensible
architecture).

High-end PCs have some advantages over the Macintosh IIfx.  The prices for
high-end PC compatibles are just beginning to decrease.  As more PC compatible
vendors ship 25-MHz and faster systems, we expect prices to drop dramatically.
Also, the installed base of PC compatibles is much larger than the Macintosh
installed based, leading to more effort by developers.  This document advises
how Apple people can respond when these objections are raised.


This document compares the Macintosh IIfx with the competition.  The Macintosh
IIfx system’s primary competition is high-end PC compatibles—25-MHz and 33-MHz
80386 systems, and 80486 systems; therefore, most of the analysis in this
document compares the Macintosh IIfx with these Intel-based machines.  However,
because of the high performance of the Macintosh IIfx, we expect some industry
analysts and customers to compare it with entry-level workstations.  Appendix D
lists some of the generic advantages and disadvantages of the Macintosh IIfx
when compared with workstations.

Macintosh IIfx's primary competition: High-end PC compatibles

We expect the majority of Macintosh IIfx sales will be to customers who want to
run mainstream productivity applications, and run them extremely fast.
Therefore, the Macintosh IIfx should compete primarily against high-end PC
compatibles.  This section discusses the huge array of high-end PC compatibles,
highlighting their similarities and differences.

Performance and price differentiate PC compatibles.  Perhaps the most dramatic
change occurring in PC compatibles is the increasing speed of the Intel
microprocessors.  Machines based on the Intel 33-MHz 80386 have been shipping
since 2Q89, machines based on the 25-MHz 80486 began shipping at the end of
1989, and we expect to see machines based on the 33-MHz 80486 soon.

Aside from performance and price differences, PC compatibles are fairly
similar.  There has been a huge debate among vendors as to whether the Micro
Channel bus or the Extended Industry Standard Architecture (EISA) bus is
superior, but we suspect that debate has gotten so much attention because these
PC-compatible vendors don’t have many other ways to differentiate their
machines.  We don’t think that customers really care about those “bus wars.”

Differences between the 80386 and the 80486.  Machines based on the 80486
processor will be faster and more expensive than 80386-based systems.  Vendors
claim that at the same clock speed, the 486 processor is roughly twice as fast
as the 386 processor.  However, that does not necessarily translate into
running applications twice as fast.  For example, PC Magazine benchmarked four
25-MHz 80486-based PCs and said that “although these 486-based systems will run
DOS applications, PC Labs benchmark tests indicate that they’ll only run them
about 10 percent faster than a 33-MHz 80386-based PC."  We think that 486-based
machines that begin shipping later in 1990, such as Compaq’s 486/25, will take
more advantage of the 486 and thus should be faster.

The 80486 includes a floating-point math coprocessor and a cache controller,
whereas those are add-ons to the 80386.  80486-based machines from Compaq and
AST running at 25-MHz are priced only slightly higher than 80386-based machines
running at 33-MHz configured with a math coprocessor.

See Appendix C for more information on high-end PCs from IBM, Compaq, and the
compatible vendors.

How does Apple respond to 486 machines?  The Apple response to this question
should be that Apple is committed to the Motorola processor architecture.
Although we are not preannouncing any products, it is logical to assume that
Apple will take advantage of the 68040, a compatible member of the Motorola
68000 family, at some future date.  It’s very deceptive to make comparisons
between computers based on the Intel processor architecture and those based on
the Motorola architecture, because the chips are so different.  Essentially,
Apple’s strategy is to offer the best personal computing experience, not just
the latest chip.


Market size for high-end PCs

Sales of 25-MHz and above personal computers are expected to grow very quickly
over the next few years.

The “High-End PCs” category includes the following: all PC compatibles,
Macintosh systems, and other personal computers running at 25-MHz or faster.
“Entry-Level Workstations” includes low-cost workstations, usually priced under
$15,000 configured.  Most of these systems are from Sun, DEC, HP, and Apollo.

Unit sales for high-end PCs take off.  According to Dataquest, the growth rate
of high-end PCs from 1990 through 1993 will be 58 percent per year.  The
Macintosh IIfx will compete with high-end 386 systems and 486 systems for share
of that large and growing market.  (The projected entry-level workstation
growth rate during that period is 50 percent.)

The above chart shows that the high-end PC market is estimated to be much
larger than the entry-level workstation market.  The main reasons for this are
that high-end PCs run a wider variety of software, are sold through retail, and
are, on average, less expensive.

Monthly sales.  The following chart shows InfoCorp’s estimates of the 4Q89
monthly unit sales of the leading high-end PCs.  (IBM’s high-end systems are
not included, because InfoCorp doesn’t break them out by model.)  These figures
only include U.S. sales through the dealer channel.


Vendor, System, Intro. date, Oct. sales, Nov. sales, Dec. sales, 4Q89 sales

Apple, IIci, Sept. 1989, 1,360, 2,440, 3,380, 7,180
Compaq, 386/25, June 1988, 500, 1,380, 1,040, 2,920
Compaq, 386/33, May 1989, 120, 260, 5,720, 6,100

Introduction

Macintosh IIfx advantages over high-end PCs

This section discusses the advantages of the Macintosh IIfx when compared with
high-end PC compatibles.

Runs graphical applications faster.  National Software Testing Laboratories ran
benchmarks comparing the performance of the Macintosh IIfx with that of the
Compaq 386/33 and the IBM Model 70 486.  NSTL found that Macintosh IIfx was
faster than both these systems for all three graphics-based applications
tested:  Excel, PageMaker, and Illustrator.  The following paragraphs summarize
NSTL’s performance benchmarks.

NSTL compared the performance of the Macintosh IIfx with that of Compaq’s
Deskpro 386/33 and IBM’s Model 70 486 by benchmarking applications that run on
all machines.  (The Compaq 386/33 was Compaq’s fastest shipping machine when
the benchmarks were performed.)  The graphics-based applications tested—Excel,
PageMaker, and Illustrator—were selected because they were the most popular
that run on both PC compatibles under Windows and the Macintosh.  (Microsoft
Word for Windows was not shipping when these benchmarks were run.)  The PC
compatibles had math coprocessors and were running these applications under
Windows/286, which is faster than Windows/386.

NSTL’s results.  NSTL found that the Macintosh IIfx was faster than both the
Compaq 386/33 and the IBM Model 70 486 for all three of these applications.
Indeed, the Macintosh IIfx ran 34% to 270% faster than IBM’s 486 machine.
Macintosh IIfx was 34% faster running PageMaker, 45% faster running Excel, and
270% faster running Illustrator.

Macintosh is optimized for graphical environments.  When computers run in a
graphical environment, they experience overhead from activities such as windows
management and handling various fonts.  The Macintosh was designed from the
start to give optimum performance in a graphical environment.  When PC
compatibles run a graphical environment such as Windows or Presentation
Manager, they are usually slower than comparably configured Macintosh systems.
This is borne out by NSTL’s results.  The Macintosh IIfx was faster than
comparable competitive machines when both were running the same graphics-based
applications.  Because increasing use of graphical environments is an industry
trend, we believe that this Macintosh advantage will become more and more
important.

What you can say about NSTL’s findings:  If you want to quote NSTL’s results in
promotional literature, you must first obtain NSTL’s written approval.
However, in an informal presentation, you can safely say the following:

“In general, Macintosh systems are faster than comparably configured PC
compatibles running in a graphics environment.”

“NSTL found that Macintosh IIfx was faster than both the Compaq 386/33 and the
IBM Model 70 486 for all three graphics-based applications tested.”

“NSTL found that Macintosh IIfx was 34% to 270% faster than IBM’s Model 70 486
running Excel, PageMaker, and Illustrator.”

You should not say the following:

“Macintosh IIfx is faster than the Compaq 386/33 and the IBM Model 70 486.”
This is not accurate, because the only results we are quoting are for
graphics-based applications.  These high-end PC compatibles are often faster
than Macintosh IIfx when running character-based applications such as Lotus
1-2-3.

Pricing advantage.  The Macintosh IIfx is aggressively priced.  Using
comparable configurations, the IIfx is priced $1,452 less than Compaq’s 386/33
system and $3,295 less than IBM’s 486/25 system, even though it outperformed
those systems in all three graphics-based applications tested.  The chart in
Appendix A compare the suggested retail pricing of the Macintosh IIfx and its
competition.

Thus, the Macintosh IIfx is not only faster than IBM’s 486-based system running
in a graphics environment, but it is also priced much lower.  From a strictly
price/performance perspective (not considering the Apple advantages), the
Macintosh IIfx competes aggressively with 486-based systems.

The Macintosh IIfx has some additional features that are not included in the
configurations of the other high-end PCs—built-in networking, SCSI support, and
a sound chip.1  Furthermore, the Macintosh IIfx configuration includes an 8-bit
color adapter, so 256 colors can be shown on screen.  The high-end PC
compatibles are configured with 4-bit color, and so can only show 16 colors on
screen.

The matrix in Appendix A details the configurations used for the pricing
comparison chart.  Appendix B provides a detailed comparison of the
specifications of the Macintosh IIfx and its competitors.

Built in hardware features.  The Macintosh IIfx includes many features as
standard that are expensive options, or simply not available, on high-end PC
compatibles.  Since these features are built into the Macintosh IIfx, but not
the high-end PCs, customers can do more with the Macintosh IIfx for a given
price.

Networking.  AppleTalk network support is built in, and adding the LocalTalk
physical connector is only $75.  On the other hand, adding networking to
high-end PC compatibles is expensive; for example, IBM’s least expensive
networking solution is priced at around $700.  Furthermore, because AppleTalk
is built in and self-configuring, connecting the Macintosh IIfx to a network is
much easier than connecting other high-end PCs to a network.

SCSI.  The Macintosh IIfx, like all other Macintosh systems, features SCSI
(Small Computer System Interface) support.  SCSI, which is becoming an industry
standard, is rarely included on high-end PCs.  PC compatible vendors usually
offer the Enhanced Small Device Interface (ESDI).  SCSI has two key advantages
over ESDI.  SCSI can support various devices:  hard disks, tape drives, optical
drives, scanners, printers, etc.  ESDI can only support hard disks.
Additionally, SCSI allows up to seven devices to plug into the SCSI bus without
using any expansion slots; ESDI only supports a single hard disk.  Dataquest
states that "if you have a broad range of peripherals and want an easy way to
attach them, SCSI is the only way to go."

Sound chip.  The sound capability of the Macintosh can accommodate the growing
number of Macintosh applications designed to include sound.  The high-end PC
compatibles do not offer sound capabilities.  To get equivalent sound
capabilities on a high-end PC, you would need to purchase an optional
third-party sound board priced around $200 and up.  And because sound
capabilities do not come standard on PC compatibles, very few MS-DOS or OS/2
applications have been written to support sound.

Hardware upgrade path.  Macintosh II and IIx systems can be upgraded to the
capabilities of the Macintosh IIfx for $2,999.  Providing an upgrade path is
not typical for PC compatibles.  AST is one of the few PC compatible vendors
that provides an upgrade path.  It allows customers to buy a 386 system and
upgrade it to a more powerful 386 or to the 486/25 later.  However, AST’s
upgrade is very expensive; for example, to upgrade from a 386SX to a 486/25
costs $6,395.

Graphical user interface is included.  The Macintosh IIfx includes the
Macintosh operating system, which features a graphical user interface that has
been crafted to run optimally on Macintosh hardware.  High-end PC compatibles
users must pay extra for a graphical user interface, choosing from among the
many incompatible interfaces available.

Graphics accelerator option.  The Macintosh IIfx and other modular Macintosh
systems offer, as an option, the Macintosh Display Card 8•24 GC accelerator
board, that will speed up screen response on all Macintosh applications.  In
contrast, graphics accelerators for high-end PC compatibles usually speed up
only a few specific applications.1

Compatibility with other disk formats.  Sometimes high-end PCs need to share
data with other personal computers using a different operating system.  The
Macintosh IIfx system’s SuperDrive provides interoperability with Apple II,
MS-DOS, and OS/2 files.  In contrast, PC compatibles cannot read from or write
to Apple II or Macintosh files.

The IIfx is a Macintosh.  Even more important than the advantages listed above,
the IIfx is a Macintosh.  As such, it has all the following advantages over
high-end PC compatibles:

•Powerful technology that’s easy to use... So you learn Macintosh faster, and
use it more.

•Innovative applications that all work together... Lets you learn the basics of
thousands of different programs simply by learning one.

•Built in multivendor networking... Makes it easy to fit into other computer
environments.

•Extensible architecture... The Macintosh you buy today will continue to
improve with Macintosh innovations of tomorrow.

High-end PC advantages over Macintosh IIfx

The following section discusses some advantages that high-end PC compatibles
have over the Macintosh IIfx.  We include this section to alert you to
objections that you are likely to face when you compete against these high-end
PCs.  After each high-end PC advantage, we suggest how Apple should respond
when this objection is raised.

Faster running standard compiler benchmarks.  Machines based on the 486 running
at 33-MHz (and maybe even running at 25-MHz) may be slightly faster than
Macintosh IIfx when running standard compiler benchmarks (for example,
dhrystones and whetstones).

Apple response:  PC compatibles sometimes add a faster processor without tuning
the rest of the system to support that processor.  That lack of balance means
that although a specific compiler benchmark may run much faster, the overall
system performance may not be significantly increased.  The Macintosh IIfx,
like other Macintosh systems, has been crafted so that all of its elements work
together harmoniously.  Therefore, it will often run graphical applications
faster than PC compatibles that have a higher dhrystones rating.

Low priced clones.  PC Magazine recently had a cover story on twelve 20-MHz PC
compatibles that had an average retail price of $2,600.  These machines were
configured with 2MB of RAM, a 40MB hard disk, and VGA display adapter and
monitor.  These machines are slower than high-end PCs, but they illustrate how
quickly the prices of PC compatibles decrease.  As more PC-compatible vendors
ship 25-MHz and 33-MHz 386 systems and 486 systems, we expect prices on those
systems to drop dramatically also.


Mac IIfx is continued in the next folder